Answering Challenges to Advanced Economies

The Government's Role: When should it step in? | Chapter 6

Good governments advance prosperity by creating institutions and rules that align individual incentives with society’s best interests.

The Government's Role: When should it step in? | Chapter 6
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Up Next The Economy: Who decides what gets made? | Chapter 7

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The Government's Role: When should it step in? | Chapter 6

Terms You May Have Heard:

Externalities: secondary or unintended consequences from the actions of a person or group, which can positively or negatively impact another party.

Incentives: anything that provides motivation for individuals or groups to do or accomplish something.

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